{"id":2597308,"date":"2026-04-30T18:12:58","date_gmt":"2026-04-30T22:12:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/minnesota-nonprofit-hospitals-spent-millions-overseas\/"},"modified":"2026-04-30T18:19:53","modified_gmt":"2026-04-30T22:19:53","slug":"minnesota-nonprofit-hospitals-spent-millions-overseas","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/minnesota-nonprofit-hospitals-spent-millions-overseas\/","title":{"rendered":"Minnesota nonprofit hospitals spent millions overseas"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fminnesota-nonprofit-hospitals-spent-millions-overseas%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2597308&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Minnesota\u2019s tax-exempt hospitals participating in the federal 340B drug discount program generated at least **$1.34 billion in net 340B revenue in 2024**, according to a report from the state Department of Health. The report also warns that regulators can\u2019t fully verify how much money comes from **office-administered drugs** versus dispensed drugs, citing inconsistent or incomplete reporting and the use of estimates.<\/p>\n<p>The article explains that 340B lets participating providers buy drugs at federally discounted prices and then seek reimbursement from commercial insurers,Medicare,and other payers **without a stated limit**,raising concerns that providers could profit from markups rather than using savings to benefit patients. It further notes that Minnesota\u2019s disclosure requirements-intended to improve clarity-still leave gaps, including unclear survey responses, missing administered-drug reimbursement data, inconsistent tracking of drug quantities, and questionable accounting of internal program costs.<\/p>\n<p>Separately, the piece argues that while hospitals are receiving large 340B revenues, many also spend significant amounts **outside the United States**. A review of IRS filings found Minnesota\u2019s top 340B recipients directed over **$3.3 billion** to activities abroad in 2024, including major sums held in offshore accounts in the Caribbean\/Central America and Europe-fueling criticism from conservative watchdogs that the program may be subsidizing activities not directly tied to patient care or charity support.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p>Tax-exempt hospitals in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/Minnesota\/\">Minnesota<\/a> that have raked in large sums of revenue from <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3406862\/controversial-changes-drug-pricing-program-state-legislatures-340b-expansion\/\">a government safety net program<\/a> spent tens of millions of dollars overseas over the past fiscal year, raising alarm among watchdogs monitoring the flow of cash in the nonprofit <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/healthcare\/\">healthcare<\/a> sector.<\/p>\n<p>Minnesota-based hospitals funded by 340B, a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/controversial-changes-to-drug-pricing-program-are-progressing-through-state-legislatures\/\" title=\"Controversial changes to ... are progressing through state legislatures\">federal drug discount program<\/a> that has drawn concerns from conservatives, together generated at least $1.34 billion in net revenue through the program\u2019s reimbursement system in 2024, according to <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.health.state.mn.us\/data\/340b\/docs\/2025report.pdf\">a February report<\/a> from the Minnesota Department of Health.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/4545019\/splc-paid-aryan-nations-operatives-bankrupting-neo-nazi-group\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>SPLC kept paying Aryan Nations operatives after bragging about bankrupting them<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/4542548\/top-lobbying-firm-does-bidding-entity-linked-uyghur-repression\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Top lobbying firm does bidding of entity linked to Uyghur repression<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/4542910\/how-souther-poverty-law-center-civil-rights-became-liberal-attack-dog\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>How the SPLC, once a defender of civil rights, became a liberal attack dog<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p>Simultaneously, these same so-called \u201ccommunity hospitals\u201d collectively spent billions abroad, primarily stashed away in offshore accounts scattered about the Caribbean, Central America, and Europe.<\/p>\n<div class=\"article-paywall\">\n<h2 class=\"wp-block-heading\" id=\"h-a-highly-lucrative-revenue-stream\">A highly lucrative revenue stream<\/h2>\n<p>Providers participating in the 340B program purchase drugs at federally mandated discounted prices from manufacturers, with no limit on the amount of reimbursements that 340B-covered entities can receive from commercial health insurance carriers or other payers, such as Medicare and self-paying patients, for the cost of acquiring the prescription medication.<\/p>\n<p>Industry hawks opposed to 340B\u2019s expansion warn that providers could then charge patients for the full cost of the drugs, unbeknownst to the beneficiaries.<\/p>\n<p>There are also no direct federal or state requirements on how qualified providers use revenue produced under the 340B program.<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3406862\/controversial-changes-drug-pricing-program-state-legislatures-340b-expansion\/\"><strong>CONTROVERSIAL CHANGES TO DRUG PRICING PROGRAM ARE PROGRESSING THROUGH STATE LEGISLATURES<\/strong><\/a><\/p>\n<p>Exponential growth in 340B revenue has raised questions about provider billing practices.<\/p>\n<p>The annual findings from the MDH, its second legislative audit of the program, are required by <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.revisor.mn.gov\/statutes\/cite\/62J.461\">a state statute<\/a> aimed at increasing financial transparency around 340B as the program <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.cbo.gov\/publication\/60661\">grows in popularity<\/a> among providers.<\/p>\n<p>Enacted in 2023, the 340B disclosure law was passed at a time when Minnesota\u2019s taxpayer-funded healthcare programs were targeted by fraudulent medical billing schemes.<\/p>\n<p>The MDH reported to the Minnesota legislature in February that the state\u2019s billion-dollar 340B earnings for 2024 are more than double the $630 million in 340B revenue that hospitals across Minnesota had hauled in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.health.state.mn.us\/data\/340b\/docs\/2024report.pdf\">in 2023<\/a>. That year\u2019s haul, however, was considered \u201ca substantial undercount\u201d because the 340B data largely did not document money made off of office-administered drugs, such as infusions and injections given on site.<\/p>\n<p>The latest $1.34 billion is likely an underestimate of statewide 340B revenue as well, according to the MDH, because the data still do not fully capture all sources of program-derived payments. MDH auditors again cited \u201cchallenges surrounding the accurate reporting of office-administered drugs.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-missing-reimbursement-data-sparks-transparency-concerns\">Missing reimbursement data sparks transparency concerns<\/h2>\n<p>In the recent report to Minnesota lawmakers, state oversight officials lamented their \u201cinability to accurately trace reimbursements for administered drugs.\u201d<\/p>\n<p>Drugs administered in an outpatient setting, like the aforementioned in-clinic drug therapy, are often significantly more expensive than typical pharmacy-dispensed drugs. Hence, clinically administered drugs bring in more money compared to those dispensed by retail pharmacies.<\/p>\n<p>In the first year of state-mandated 340B reporting, most Minnesota healthcare centers only submitted data on dispensed drugs and left out office-administered drugs, blaming supposed ambiguity in the legislation. The state legislature subsequently <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.revisor.mn.gov\/laws\/2024\/0\/Session+Law\/Chapter\/127\/\">clarified<\/a> its intent to collect data on all 340B drugs, including office-administered drugs, and 340B revenue reports submitted for the following year were accordingly supposed to include both types of drugs.<\/p>\n<p>Still, few participating providers followed <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.health.state.mn.us\/data\/340b\/docs\/admindrug2025.pdf\">MDH guidance<\/a> in the second year of Minnesota\u2019s 340B transparency pilot program. An unknown amount of the reimbursement data pertaining to administered drugs is missing.<\/p>\n<p>MDH personnel asked providers to acknowledge in a survey which drugs were recorded. Survey responses were \u201csometimes unclear or conflicted with previously stated information,\u201d and some surveys were never completed. Approximately 12% of providers admitted that they only submitted 340B data on dispensed drugs and omitted office-administered medicines.<\/p>\n<p>More than half of the 340B program participants sent in estimates instead of actual figures for administered drugs. Many of the 340B entities, despite MDH reporting guidelines, did not identify their estimation method. Of the providers that did provide explanations as to how they calculated estimates, their methods for quantifying reimbursements varied vastly.<\/p>\n<p>The MDH was not able to independently validate those methods or the input data used in the calculation of said estimates. Due to such factors, the MDH could not determine the apparent miscount\u2019s magnitude.<\/p>\n<p>The exact volume of 340B drugs dispensed or administered is also unaccounted for due to \u201cwidespread inconsistency\u201d in how hospitals counted the quantity of outgoing prescriptions.<\/p>\n<p>Roughly half of providers used \u201cpricing units,\u201d for example, a gram or a millimeter, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.health.state.mn.us\/data\/340b\/docs\/fm2026.pdf\">as required<\/a>, while the other half grouped by claims or prescription fills. Some providers mixed different pricing units within the same submission. The volumetric data are therefore rendered unusable, as there is not yet a reliable method for reconciling nonuniform reporting.<\/p>\n<p>340B providers may also be fudging the numbers on internal costs, that is, operational expenses incurred by covered entities to administer the program, such as money needed for staffing, training, or other administrative overhead.<\/p>\n<p>MDH personnel say that while there is no way to validate alleged internal costs, auditors observed that several providers reported substantial expenditures, at times greater than 90% of total 340B programmatic costs, including the cost of purchasing the drugs.<\/p>\n<p>The state health department flagged suspicious reporting patterns of <a href=\"https:\/\/amzn.to\/3YuVZYV\" >providers attributing general upkeep-related expenses<\/a> to 340B operations and categorizing costs as \u201cwaste,\u201d \u201cother,\u201d or another vaguely described budget item.<\/p>\n<p>Thus, it is possible internal costs were inflated by providers, the MDH concluded, resulting in what appears to be lower net 340B revenue as reported on paper.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-simultaneous-overseas-spending-calls-into-question-actual-delivery-of-charity-care\">Simultaneous overseas spending calls into question actual delivery of charity care<\/h2>\n<p>The nonprofit Minnesota hospitals raking in 340B revenue have, during the same period, disbursed millions of dollars internationally on investments in foreign countries.<\/p>\n<p>In 2024, the top 25 recipients of 340B revenue in Minnesota spent more than $3.3 billion on activities outside the United States, according to a <em>Washington Examiner<\/em> review of each hospital system\u2019s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1q7J22XBnGzIa6UxE7fbkvAfsN2jUlLP3\/edit?usp=sharing&#038;ouid=110726802172993553070&#038;rtpof=true&#038;sd=true\">990 IRS filings<\/a> comparing overseas spending to provider-level 340B income.<\/p>\n<p>A fifth of the cash, more than $668 million, went toward offshore holdings in the Caribbean and Central America. Another $162 million was invested in European accounts.<\/p>\n<p>Conservative critics say some providers are exploiting the 340B program either to subsidize services banned from <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-dems-drop-for-profit-college-criticism-to-appease-biden-nominee\/\" title=\"Senate Dems Drop For-Profit College Criticism to Appease Biden Nominee\">receiving federal funding<\/a>, such as pediatric sex-change procedures, or finance activities entirely unrelated to medical care.<\/p>\n<p>Opponents of the program caution that providers who procure deeply discounted prescriptions might pocket the difference generated from marked-up reimbursement rates and reinvest their 340B savings elsewhere.<\/p>\n<p>Will Hild, the executive director of <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/consumersresearch.org\/\">Consumers\u2019 Research<\/a>, said some of Minnesota\u2019s largest hospital chains generating revenue from the 340B program are, in turn, pouring resources into diversity, equity, and inclusion initiatives, climate alarmism, and gender-transition treatments for minors.<\/p>\n<p>For instance, M Health Fairview, one of the state\u2019s biggest 340B earners, has reportedly carried out <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/alphanews.org\/database-reveals-382-mn-kids-received-sex-change-related-medical-interventions-in-5-years\/\">transgender procedures on children<\/a>. Allina Health, which oversees six 340B entities in Minnesota, treats DEI and <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.allinahealth.org\/environmental-sustainability\">environmental activism<\/a> as core priorities.<\/p>\n<p>\u201cMeanwhile, millions of dollars are being funneled into overseas investments instead of being spent where it belongs \u2014 on patients here at home,\u201d Hild told the <em>Washington Examiner<\/em>.<\/p>\n<p>Nonprofit hospitals spending funds on political <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.thecentersquare.com\/florida\/article_37cbf475-663e-4213-941b-375f92a4e307.html\">lobbying<\/a>, litigation, and other agenda items irrelevant to patient services are facing increasing scrutiny and <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.dailysignal.com\/2026\/03\/17\/exclusive-campaign-calls-out-waste-concerns-at-cleveland-clinic\/\">accusations<\/a>, including from <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/waysandmeans.house.gov\/2025\/09\/22\/six-key-moments-hearing-on-tax-exempt-hospitals-and-the-community-benefit-standard\/\">regulators in Congress<\/a>, that they are undeserving of their tax-exempt status and the tax benefits that accompany it.<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/lownhospitalsindex.org\/hospital-fair-share-spending-2024\/\">Several<\/a> <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/publichealth.jhu.edu\/2024\/evaluating-tax-exemptions-in-nonprofit-hospitals\">studies<\/a> have found that up to 80% of hospitals classified as charitable organizations are spending less on charity care than they receive in tax breaks.<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/opinion\/beltway-confidential\/3343651\/340b-drug-pricing-program-sabotaging-trump-agenda\/\"><strong>OPINION: THIS SUBSIDY PROGRAM IS SABOTAGING TRUMP\u2019S AGENDA<\/strong><\/a><\/p>\n<p>\u201cIt\u2019s absurd that American hospitals, which benefit from tax exemptions and direct subsidies, turn around and act like multinational investment firms,\u201d <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/saveourstates.com\/\">Save Our States<\/a> executive director Trent England said.<\/p>\n<p>\u201cThey do this instead of passing savings on to patients or increasing their paltry percentage of charity care,\u201d England told the <em>Washington Examiner<\/em>. \u201cIt\u2019s time for the rampant waste and abuse by nonprofit hospitals to be exposed and for policymakers to demand that they prioritize patient care.\u201d<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Minnesota 340B-funded hospitals sent tens of millions abroad, watchdogs alarmed<\/p>\n","protected":false},"author":3767,"featured_media":2597309,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/03\/Social-Security-money-13-3.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[46938,78894,78895,5698,60839],"class_list":["post-2597308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-healthcare-funding","tag-international-spending","tag-investigative-news","tag-minnesota","tag-nonprofit-hospitals"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/03\/Social-Security-money-13-3.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2597308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3767"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2597308"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2597308\/revisions"}],"predecessor-version":[{"id":2597312,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2597308\/revisions\/2597312"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2597309"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2597308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2597308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2597308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}